Petron to spend add’l P1.5B for expansion

Petron Corp. will be spending an additional P1.5 billion for its refinery expansion and marketing capital, a company official disclosed to the Philippine Stock Exchange (PSE).

Petron corporate secretary Liberador Villegas said the capital expenditure program will be implemented by next year as approved by the company’s board of directors.

This year, Petron has allotted only about P837 million for programmed investments, of which 64 percent will be channeled to marketing and supply facility and 35 percent for refinery enhancements.

The strategic expenditure program came after the country’s largest oil refiner, with a 38.3-percent share of the market, posted a sharp turnaround in its profitability during the first nine months of the year.

It was reported that from January to September, Petron posted a net profit of P921 million, a reversal from a P1.3-billion loss in the same period last year.

Although company officials said their earnings performance was relatively modest as compared to their historical record, the oil firm managed to stay afloat due to cost discipline that contributed to a positive bottom line.

Petron was able to slightly cut down on its operating expenses during the period and, at the same time, improve on its sales revenue, which grew by 7.5 percent to P6.7 billion.

"While there has been a decline in domestic demand for petroleum products, we continue to implement strategic measures aimed at improving revenues and cost efficiencies," Petron corporate communications officer Virginia Ruivivar said.

In the nine-month period, Petron’s sales volume was 8.6 percent lower at 35.5 million barrels as the slowdown in economic activity resulted in weaker demand across industries. — Conrado Diaz Jr.